UPDATE: OCTOBER 24, 2018 — U.S. BANK ANNOUNCES 700 ADDITIONAL LAYOFFS
A spokesperson for U.S. Bank has announced that “changing conditions” are responsible for the layoff of 700 bank employees. The spokesperson refused to identify which employees would be laid off, their location, or their positions. However, they added that these layoffs are in addition to the 260 previous layoffs in Ohio.
Employees of the bank suggested that the layoff may have impacted 1,000 employees rather than just 700.
Minneapolis, Minnesota-based U.S. Bank, the seventh largest bank (by assets) in the United States, has announced that it will be laying off 260 employees and closing its Bedford, Ohio mortgage and consumer banking office. Work will be transferred to other U.S. Bank facilities. The decision to shutter the facility was based on the management of their real estate portfolio.
A company spokesperson, Molly Snyder commented …
"After a strategic review of our real estate footprint, we have made the decision to close the U.S. Bank satellite office in Bedford, Ohio, when its lease expires this fall."
It has been reported that the bank has also embarked on a quiet “talent optimization” scheme that sees affected employees rewarded with a “separation package” in return for a signed NDA (Non-Disclosure Agreement) that prevents the employee from publicly commenting on the separation or the bank itself. It appears that this is the bank’s preferred modus operandi as it avoids adverse publicity and the necessity to file WARN (Worker Adjustment and Retraining Notification) notices.
While the bank appears to be helped by the rising Fed interest rates, it also appears that the bank’s mortgage origination and servicing income are below expectations. Perhaps as a result of management’s aversion to risk in the mortgage market in a questionable economy.
It can happen to anyone, anytime, anywhere ... are you wondering, Am I Next?